Facebook, yet again, posted arguably its best quarter ever, reaping $3.2 billion in revenue in Q3, with 66 percent of their ad revenue coming from mobile. Facebook now has 1.35 billion users (1.12 billion on mobile).
But is the best for Facebook still to come? Here’s what we learned from Facebook’s quarterly earnings call on Tuesday.
1. Facebook thinks it can fix digital advertising
Chief Operating Officer Sheryl Sandberg knows that there’s still a gap between how people interact with advertising (on mobile) and how advertisers still prefer to deliver messages (display and desktop).
How important is mobile for Facebook? Mobile advertising now accounts for 66 percent of Facebook’s advertising revenue, according to Q3 figures announced by the company today.
Facebook posted its most successful quarter to date, in terms of revenue. The social network reaped $3.2 billion in revenue this past quarter, beating Q2 totals ($2.91 billion).
Other key figures:
- Daily active users (DAUs) were 864 million on average for September 2014, an increase of 19 percent year-over-year.
- Mobile DAUs were 703 million on average for September 2014, an increase of 39 percent year-over-year.
- Monthly active users (MAUs) were 1.35 billion as of September 30, 2014, an increase of 14 percent year-over-year.
- Mobile MAUs were 1.12 billion as of September 30, 2014, an increase of 29 percent year-over-year.
More key stats and facts from Facebook’s Q3 can be found below.
Facebook recently announced an update to its iOS and Android mobile apps, aimed at making it easier for users to share multiple photos from their mobile devices.
3Q Digital, a digital media agency, recently analyzed its clients’ performance with Facebook ads, finding a huge drop in impressions, but a pretty big jump in clickthrough rate. This illustrates that while reach may be tumbling on Facebook, those who are seeing messages are the most willing to take an action.
Year-over-year, there has been a 54 percent decrease in impressions (taking into account both mobile and desktop campaigns), a 56 percent increase in cost per click, a 342 percent rise in clickthrough rate and a 224 percent increase in ad spend. Since Q2 2014, 3Q Digital’s clients have seen a 136 percent decrease in impressions, a 53 percent increase in clicks, a 262 percent increase in clickthrough rate and a 54 percent increase in spending.
However, much of the cost increase and impressions decrease appears to be on desktop, as mobile numbers are more positive.
Facebook recently made it easier to keep track of a conversation on the mobile app. Inside Facebook discovered recently that threaded replies have made their way to the mobile app.
This has been a popular feature on mobile, as it’s an easy way to respond to another person instead of having all comments listed chronologically, as was the default for the past on the mobile app.
Facebook has been tinkering with search on mobile, testing variations similar to Graph Search, currently available on desktop.
But it appears that the Trending module has found another home on mobile.
Facebook is testing the Trending topic list on the iOS search page, as discovered by Inside Facebook reader Kristy Stevenson, Manager of Social Content & Community Development at Rockfish Interactive.
When an iPhone user goes to search for a page or a friend, below a list of recent searches is a list of trending topics currently popular on Facebook.
Facebook confirmed to Inside Facebook that it’s a test among certain mobile users, not a feature:
We’re testing improvements to search on mobile.
Facebook’s Audience Network, announced first at f8, is now available to more marketers worldwide. The company has opened up its advertising network that allows brands to utilize Facebook data to target consumers outside of the social network.
Facebook announced the global rollout in a blog post:
In addition to making the Audience Network more widely available, we’re also expanding the types of ads it displays. Along with app install and app engagement ads, the Audience Network now supports link ads, meaning any advertiser can use the network to drive traffic to its mobile website.
Businesses are already seeing strong results with the Audience Network. Relative to other Facebook campaigns, Walgreens increased its reach by 5% and improved its click-through rate by 4-5X during tests with the Audience Network.
Facebook first previewed a mobile Like button at its f8 conference in April, but the company announced today that it is rolling the feature out for anyone. Now app developers can use the Like button to get people to easily become a fan of the page.
Facebook Software Engineer Todd Krabach noted in a blog post that the Like and Share buttons are seen across nearly 10 million websites monthly:
Today, we are excited to make the Like Button available to all Android and iOS mobile app developers. People using a mobile app can directly Like the app’s Facebook Page, or any Open Graph object within the app, and share on Facebook. The mobile Like Button works seamlessly with the Facebook account the person is logged into on their device, allowing people to Like any piece of content, while in your native app.
As rumored, Facebook will announce today the relaunch of Atlas at Advertising Week in New York City.
Atlas focuses on people-based marketing, getting away from cookies and enabling true cross-device advertising. Erik Johnson, the head of Atlas, announced the relaunch in a blog post:
Atlas delivers people-based marketing, helping marketers reach real people across devices, platforms and publishers. By doing this, marketers can easily solve the cross-device problem through targeting, serving and measuring across devices. And, Atlas can now connect online campaigns to actual offline sales, ultimately proving the real impact that digital campaigns have in driving incremental reach and new sales.
Atlas has been rebuilt on an entirely new code base, with a user interface designed for today’s busy media planners and traffickers. Targeting and measurement capabilities are built-in, and cross-device marketing is easy with new ways of evaluating media performance centered on people for reporting and measurement. This valuable data can lead to better optimization decisions to make your media budget even more effective.
Despite widespread panic over privacy concerns, a new infographic from GlobalWebIndex shows that the adoption of Facebook Messenger continues to grow in many countries. This may be somewhat unsurprising, given that Facebook has unbundled messaging from the main app and pushed that feature into its Messenger app.
GlobalWebIndex notes that Facebook Messenger is now the world’s second-most-popular messaging app, behind another Facebook entity — WhatsApp. In the U.K., the percentage of mobile users with Facebook Messenger rose from 27 percent at the end of 2013 to 40 percent midway through 2014.
Here’s a look at Facebook Messenger’s top markets internationally, ranked by the share of mobile audience.